Hydrofarm sees FY24 sales to decrease low-to-high teens in percentage terms

The Company is reaffirming its full year 2024 outlook on Key Metrics: adjusted EBITDA(1) that is positive. Free Cash Flow(1) that is positive. Hydrofarm’s (HYFM) 2024 outlook also reaffirms the following assumptions: Reduced year-over-year Adjusted SG&A(1) expense resulting primarily from (i) full year benefit of headcount reductions completed in 2023 and (ii) reductions in professional fees, facilities and insurance expenses. Reduction in inventory and net working capital helping to generate positive Free Cash Flow(1) for the full year. Hydrofarm’s 2024 outlook also includes the following updated assumptions: Adjusted Gross Profit Margin(1) that is flat to slightly down compared to the prior year. This is an update to the prior expectation of a year-over-year improvement. Capital expenditures of $2.5 million to $3.5 million, compared to the prior expectation of $3.5 million to $4.5 million.